Let me explain in simple terms some facts about money and America, without statistics, which can be supplied by Mr. Phil Gramm and Mr. Larry Kudlow.
During the Great Depression, taxes were raised in attempts to balance the federal budget. Alas, it didn’t work and plunged us further into that deep hole.
Under President Carter, America had economic calamity; stagflation-high inflation and elevated unemployment-accompanied by high interest rates and a “malaise” that was declared by the President himself.
When President Reagan assumed office, he took tough monetary measures with astute guidance of the Federal Reserve under Paul Volker and a sterling Council of Economic Advisers including Milton Friedman. As he got inflation under control, he moved (with a largely Democratic Congress) to lower taxes from ridiculous rates and reduced regulations. The result: about 25 years of American prosperity.
President Bush attempted to repeat the achievement, but met with stiff Democratic resistance in Congress, leading to fairly low tax cuts which were weaker in effect. He was also falsely blamed for the financial debacle of 2008 which happened due to unscrupulous financial people bundling bad mortgages.
President Obama presided over 8 years of an extremely anemic economy which was particularly bad for blacks as well as all those of low skills. However, the wealthy did quite well as the Federal Reserve under the Obama/Biden Administration printed money (which stimulated the stock market) and had the dubious effect of doubling America’s debt. Neither President Obama nor Vice President Biden had any significant knowledge of business or the critical role of freedom and free enterprise which engender creativity and prosperity.
President Trump and Republicans to the rescue! They accomplished a massive tax cut without a single Democratic vote in Congress. And the President effectively cut regulations which greatly helped. In 2019 the American people went to work- quite literally-with historical gains for blacks, browns, Asians, and women. Then (I think intentionally) the China virus hit.
One counterintuitive fact (with both President Reagan and President Trump) when taxes and regulations were cut; federal tax revenues went up as Americans went to work, incomes increased, and big as well as small businesses’ profits expanded. In both cases, the positive effects on tax revenues were masked by necessary increases in military spending to win the Cold War and to confront the China threat.
Now “President” Biden is still sadly lacking or oblivious to the above facts. He wants to raise taxes to pay for his agenda. If he enacts his tax bill; it will hurt employment, profits and income, and LOWER tax revenues. Crushing new regulations will “lead” us to another anemic American economy like the Obama/Biden years-Heaven forbid!